New Delhi: Finance Minister Pranab Mukherjee said he has noted reports about Swiss banks’ reservations in sharing client details with India, but did not say what course of action the Government will take.
"I have read in the newspapers," Mukherjee said while replying to a question about the the Swiss Bankers Association's stand that India was not welcome on a name-fishing expedition, although top bank UBS AG agreed to provide details of more than 4,000 accounts to the US authorities.
Swiss law and even OECD's Model Tax Convention do not permit fishing expeditions, in other words, the indiscriminate trawling through bank accounts in the hope of finding something interesting.
“This means that India cannot simply throw its telephone book at Switzerland and ask if any of these people have a bank account here," SBA's Head of International Communications James Nason had said.
Mukherjee had recently informed Parliament that the Government was committed to unearthing black money within and outside the country.
"Swiss authorities, I am told, have agreed for negotiations (on the issue)... We have already taken it (the issue of black money) not only with Swiss authorities but other nations as well," Mukherjee had said.
The secrecy shield provided by Swiss banks have always been a big issue in India, including during the campaign for this year's General Elections.
Last week, the US reached an agreement with Switzerland, under which UBS would furnish details of 4,450 secret accounts to the American authorities.
As regards India, the SBA official said, "The key for the exchange of information in tax matters is the Double Taxation Agreement between Switzerland and India."
Switzerland has Double Taxation Agreement with over 70 countries including India.
Political colour in black money
Swiss banks on Sunday made it clear to India that they won’t provide details of their account holders unless they are proved tax offenders.
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The matter has been made a political issue in the country now.
The BJP raised the issue during the General Elections and Opposition leader LK Advani promised to bring back all the money from the Swiss banks
Even Congress joined in the chorus but now it seems the authorities in Switzerland aren’t too eager to share the details of the suspected accounts with India.
During the election campaign Prime Minister Manmohan Singh had also indicated that it won’t be an easy task to get details from the Swiss banks.
“Some information has come in but we are sworn to secrecy,” said the PM.
The key to secret accounts reportedly lies in the double taxation agreement between India and Switzerland.
The US also got the names of over 4000 offenders under similar condition through this agreement.
However, the Swiss Justice Ministry says it can't have a deal with India on revealing accounts of Indians in banks.
"Switzerland can't sign a similar deal with India because we've signed a treaty with US," says chief press spokesperson, Ministry of Justice, Folco Galli.
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